The Santiago Exchange Indices Methodology Consultation
The Santiago Exchange Indices Methodology Consultation SANTIAGO, APRIL 2, 2018: In August 2016, the Santiago Exchange (the “Exchange”) and S&P Dow Jones Indices (“S&P DJI”) signed an Index Operation and License Agreement. The Exchange’s partnership with S&P DJI, the world’s leading provider of index-based concepts, data and research, includes the adoption of international index methodology standards and the integration of operational processes and business strategies and enhances the visibility, governance, and transparency of the existing indices. The agreement also enables the development, licensing, distribution and management of current and future indices which will be designed to serve as innovative and practical tools for local and global investors. The new and existing Santiago Exchange indices will be co-branded under the “S&P/CLX” name (the “Indices”) that can be used to underlie liquid financial products, expanding the breadth and depth of the Chilean capital market. As part of this transition, S&P DJI and the Exchange are conducting a consultation with members of the investment community on potential changes to the following Santiago Exchange indices to ensure that they continue to meet their objectives and are aligned with the needs of local and international market participants. • Indice General de Precios y Acciones (“IGPA”) • IGPA Large, IGPA Mid, and IGPA Small (collectively “IGPA Size Indices”) • Indice de Precios Selectivo de Acciones (“IPSA”) IGPA The IGPA is designed to serve as a broad country benchmark of the Chilean market. Based on a review of the index’s methodology and existing data, and to ensure that the index continues to satisfy its objective, S&P DJI and the Exchange are proposing to increase the minimum bursatility presence1 required for index eligibility.
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